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Solar Energy Becomes Popular in California by Anne C. Mulkern The Orange County Register, March 19, 2001

With the threat of power blackouts and higher electricity bills looming, consumers suddenly are hot for the energy source that never seemed to get any respect.

Solar power, once the province of rural dwellers and environmentalists, is gaining mainstream appeal as the unlikely beneficiary of the state's deregulation disaster.

It's an expensive alternative, as much as $20,000 for a system that powers a 2,000-square foot home.

But consumers craving energy autonomy say it's worth the price. Shiny, blue-tinged panels increasingly dot rooftops in Southern California.

"People have started saying they've had enough," said Greg Johansen, owner of Solar Electrical Systems in Thousand Oaks. "They want some control in their lives, and don't want to be a pawn of Southern California Edison and the state."

The state Energy Commission, which is offering rebates on qualifying systems, took 450 applications from solar buyers in January and February. That's nearly the same amount received in the three previous years combined.

Phone inquiries to the commission jumped from about 30 per month in September to 250 per month in January.

And solar sellers are inundated. Bob Siebert of Orange started his business, Energy Efficiency, as a part-time retirement job about a decade ago. Now he's working full time and hiring subcontractors to keep up with the orders.

"You can safely say this is going to be the year of solar," said Sanford Miller, head of the state's solar-rebate program. "By the end of the year there's going to be a lot of houses with solar on them."

Some homeowners are buying the systems to protect themselves from blackouts. Others are weighing the economics and concluding that an investment in solar could pay off quickly if power rates rise. Others want to make a statement about their anger over the state's energy catastrophe.

"I'm outraged that large corporate powers can band together and apparently charge whatever they want for power," said Lisa Rosen, 55, of Seal Beach. "We're all hostage now to a consortium of electric-power suppliers."

Rosen and her husband, Doug Korthof, are buying a solar system large enough to supply their 2,200-square- foot beach home. After the state rebate, it will cost about $7,000 to $8,000. The couple have two relatives and a friend who also are installing solar.

"This is an area we've always taken for granted, that we'll have adequate supplies of electricity," Rosen said. "This summer we probably won't."

Solar has been through previous cycles of popularity followed by disinterest. During the late 1970s' oil crisis, consumers briefly rushed to solar as an option.

Today's solar power systems, however, are far more efficient than older ones that created electricity by boiling water that powered a generator.

A technology called photovoltaics works through semiconductors on rooftop panels, converting sunlight into electricity. The same technology powers solar calculators, watches, freeway callboxes and satellites.

Many systems include 10- or 20-year warranties, giving consumers more protection than the older systems, which tended to malfunction.

Users remain hooked up to their utilities, and send any excess energy they generate to the power grid. When they make more than they use, their electricity meter runs backward. They bank those energy credits and use them later. Consumers aren't paid for generating more power than they use, but theoretically they could shrink their electric bills to zero.

"I love to go outside and watch the meter spin backwards," said Linda Nicholes, who paid $20,000 to add a solar system to her 3,000- square-foot Anaheim Hills home last year.

"It gives me a thrill. On a sunny day, I must go out there three times a day and say, `Yes!'"

Recent legal changes make it easier to install solar, even for those living in planned communities with restrictions on what can be added to homes. A law passed last year says the right to install solar outweighs any unreasonable restrictions imposed by a community.

The state has been offering rebates on so-called renewable-energy systems, like solar, since deregulation began in March 1998. As part of deregulation, the state set up a $54 million rebate fund for solar and other environmentally friendly power systems.

Interest in the rebates was lukewarm until late last year, when the state's deregulated electricity system began lurching toward collapse.

About $39 million remains of the original fund, and Gov. Gray Davis has proposed adding another $50 million to it. State rebates are based on how much power a system generates. To qualify for the state rebates, consumers must be customers of Southern California Edison Co., San Diego Gas & Electric Co. or Pacific Gas & Electric Co.

Anaheim's city-owned utility, partially because of lobbying by new solar owner Nicholes, is setting up a separate rebate plan. That plan, if approved, will start in July.

Financing the work through a home-equity loan brings down the cost through tax savings. Costs could fall more in coming months if state lawmakers approve proposals to enhance solar's appeal. Those include possible tax credits for installing solar or making solar power systems free of sales tax.

But even the prospect of a 15- to 20-year payback hasn't scared off a growing group of consumers.

"People are looking at it a little differently," said Joel Davidson, head of PowerCom Energy of Los Angeles, which sells solar-power systems. "A lot of them have told me they want to have reliable electricity. They're willing to have a 15- to 20-year payback."

About half of those ordering systems from seller Siebert are buying batteries, which store solar-generated power and can keep the lights on during a blackout. Those batteries add about $3,000 to the cost and don't qualify for the rebate.

"It gives us a little bit of security, in case there are outages," said Anne Newland, 54, of Costa Mesa, who is buying a solar-power system that will cost between $12,000 and $15,000 after the state rebate. "If there are rolling blackouts this summer, at least we will have a back-up system."